2026-VIL-155-CESTAT-AHM-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Assessable Value - Appellant cleared bulk bitumen from its refinery and transferred some quantity to its depots for packing in barrels before further sale - Appellant initially assessed the value of barreled bitumen sold from the depots by including the cost of barrels, but later started deducting the cost of barrels - Revenue sought to include the cost of barrels in the assessable value under Section 4(1)(a) and Rule 7 of the Valuation Rules - Whether the cost of barrels is to be included in the assessable value of barreled bitumen cleared from the depot – HELD - The barreled bitumen sold from the depot is not cleared as such from the refinery, therefore, it is incorrect to assess "such goods" at the same price at which bulk bitumen is cleared from the refinery. The Tribunal relied on the decision in Clariant (I) Ltd. case, where it was held that where goods are not sold when removed from the factory but are merely transferred to the depot, the depot becomes a place of removal under the law and the cost of packing is to be included in the transaction value of the packages sold from the depot - The appellant is eligible for Cenvat credit of excise duty paid on purchase of barrels for packing of bitumen in their depots before clearance, as the depot is an extension of the factory and the packing material used there is eligible for Cenvat credit. The matter is remanded to redetermine the duty liability on the appellant for the normal period along with interest and penalty, if any, and to allow the Cenvat credit of duty paid on packing materials - The appeals are partially allowed by way of remand
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